Annex: Report on equality and equal pay

Deutsche Telekom is a leading integrated telecommunications company, with a presence in more than 50 countries.

We embrace diversity. With its global focus, our Group unites a wide variety of different cultures, experience, and talent, and we are actively committed to fostering this diversity. Our ultimate goal is to benefit from the creativity and innovation that diversity offers. As early as 1992, our then Board of Management launched a program for the advancement of women. That program ushered in a whole range of measures that are still in place today, including efforts to increase the percentage of women in management positions and in technical professions, and to come up with more flexible working-time models for both women and men.

Since 2010, our goal has been to achieve a share of 30.0 percent of women in (upper and middle) management. The corresponding figure in 2010 was already a gratifying 22.7 percent across the Group, and by 2016 we had succeeded in raising it to 25.4 percent. The corresponding figures for our Group companies in Germany have also risen: from 12.5 percent in 2010 to 21.2 percent in 2016. At year-end 2016, women accounted for 35.3 percent of our global workforce. At Deutsche Telekom AG, they made up an average of 42.5 percent of the workforce in 2016. On average, 62.5 percent of these women worked full time, while 37.5 percent worked part time.

In 2015, the Act on the Equal Participation of Women and Men in Management came into force in Germany, creating a statutory obligation to fill 30.0 percent of supervisory board positions with women. We have gone a step further, setting ourselves the goal of filling 30.0 percent of board of management and managing board positions and 30.0 percent of management level 1 and 2 positions with women. Deutsche Telekom AG had already achieved one of these goals at the end of 2016, with 40.0 percent of its Supervisory Board positions held by women. The corresponding figures for management levels 1 and 2 at year-end 2016 were gratifying as well, at 29.6 percent and 25.5 percent respectively. Only at Board of Management level was the share of women – at 14.3 percent – not yet close to the target level. We continue our efforts to promote gender equality and focus on raising the profile of this issue in HR processes, for example using

regular reports that track the trend in what we term the fair share quota;

events and partnerships such as women@work, FEMTEC, and the STEM award;

partnerships with HR consultants that specialize in finding women to fill management positions;

strategic succession planning with a focus on rules for filling positions (e.g., at least one woman on the successor shortlist);

flexible working-time options such as flexitime, part time with a guaranteed option to return to full-time work, phased retirement, family care leave, leave of absence, lifetime work accounts, leave without pay, parental leave, caregiver’s leave, education leave, tandem models, working from home or on the move.

Improving its employees’ work-life balance is a top priority for Deutsche Telekom, which is why we offer company childcare facilities or parent-child offices at many locations. We also have an experienced partner in the shape of AWO Lifebalance GmbH, a company that offers our employees information and consultation free of charge on all aspects of childcare and care for the next-of-kin, and can help find the right services for them. The latter include not only classical childcare and nursing care services, but also personal and household services.

In order to create the basis for diversity among our junior staff, we rely on a selection procedure that is geared to talent – one that focuses less on grades, and more on the aptitudes, strengths and interests that the applicants require for their respective courses of training/study and for their prospective careers within our Group. This selection procedure enables us to win over new talent and access previously untapped pools of applicants. Another project, which we are conducting in cooperation with Germany’s Federal Employment Agency, focuses on training and cooperative study programs on a part-time basis. Since 2011, we have been offering single parents part-time training and cooperative study programs. To enable this target group to balance the demands of bringing up their children and still earning initial professional qualifications, we allow them to reduce their weekly working time to 25 hours (though they still have to complete their study times in full).

Since 2015, we have been raising awareness of unconscious bias. In 2016 alone, more than 130 classroom and online workshops were held on this topic, and we began rolling out these workshops worldwide in July 2017. Unconscious bias refers to prejudicial assumptions that people hold regarding the capabilities, skills and tendencies of other people. Such assumptions are affected by numerous different factors, many of them physical. Unconscious bias thus denotes thought processes that occur unconsciously and very quickly, without being sufficiently questioned. For example, we often select applicants who seem similar to us, or who seem to be the right fit for our corporate culture. As a result, we can overlook others with great innovative and creative potential.

In order to prepare women for positions on supervisory boards, a Supervisory Board Readiness Program was conducted for women in management positions in 2015 and 2016. A new round of this program, which was entitled “Update your readiness,” was launched in November 2017. Our mentoring program Child and Career [Karriere mit Kind] helps ease workers back into their jobs after a period of parental leave. The focus is on avoiding gaps in the individual’s career and promoting a change in culture that will enable people to strike a balance between their careers and their parental obligations.

In our Company, compensation is based on the nature and scope of a person’s work and not on their gender. Our collective agreements on remuneration and other matters reached with the trade unions ensure a transparent, gender-neutral system of compensation. As a result, we offer remuneration that is independent of gender, age, and nationality.